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SECY-00-0046

February 23, 2000

Contact:  T. Bergman, OEDO

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending February 18, 2000

Steam Generator Regulatory Framework

On February 4, 2000, the Nuclear Energy Institute (NEI) submitted a generic licensing change package which would relocate much of the existing steam generator standard technical specification (TS) surveillance and limiting conditions for operation requirements to other licensee controlled documents. The generic licensing change package includes a proposed revision to NEI 97-06, "Steam Generator Program Guidelines," and a proposed template for preparing plant-specific license amendments (including generic TS and a generic technical requirements manual section). The submittal represents a milestone in successful interaction between the industry and the staff on the development of a steam generator regulatory framework.

FitzPatrick and Indian Point 3

On February 14, 2000, the New York Power Authority announced its plans to sell the FitzPatrick and Indian Point 3 nuclear power plants to Entergy Corp. NYPA hopes to complete the sale by late this summer.

Under the proposed arrangement, Entergy will pay NYPA $50 million upon transfer and will make annual payments of about $84 million for the next seven years. Entergy will also make seven annual payments of about $24 million for nuclear fuel. Entergy will also offer continued employment to all nuclear operations personnel as well as to those staff members who provide direct support.

PSE&G to PSEG Nuclear LLC License Transfer

On February 16, 2000, the NRC issued Orders for Hope Creek Generating Station; Salem Nuclear Generating Station, Units 1 and 2; and Peach Bottom Atomic Power Station, Units 2 and 3; approving the transfer of the respective licenses to the extent they are held by Public Service Electric and Gas Company (PSE&G) to a new, affiliated nuclear generating company, PSEG Nuclear Limited Liability Company (PSEG Nuclear LLC). PSEG Nuclear LLC is a wholly-owned subsidiary of Public Service Enterprise Group, Inc., the current parent of PSE&G.

Quad Cities

On February 15, 2000, NRR issued an Order and Safety Evaluation approving the application for a proposed change in shareholders for MidAmerican Energy Holdings Company (MEHC), the parent company of MidAmerican Energy Company, the 25% owner, non-operator of Quad Cities. The transaction results from the acquisition of all of MEHC's stock, which is now publicly traded, by a small group of investors, including Berkshire Hathaway Inc.

Nine Mile Point 2

On February 15, 2000, the staff issued a license amendment which replaces the Nine Mile Point 2 technical specifications in their entirety with new technical specifications based on the improved Standard Technical Specifications (STS). This is the 54^th unit that has been approved to convert to the improved STS. The licensee will implement these revised technical specifications within 180 days. Issuance of this amendment completes an item in the Commission Tasking Memorandum.

NRC Regulatory Issue Summary 2000-01: Changes Concerning Foreign Ownership, Control, or Domination of Nuclear Reactor Licensees dated February 1, 2000

The U.S. Nuclear Regulatory Commission (NRC) issued this regulatory issue summary to remind addresses of the prohibition against foreign ownership and control and, in a manner consistent with NRC Administrative Letter 96-02 ("Licensee Responsibilities Related to Financial Qualifications"), to remind addresses of their ongoing responsibility to bring to the NRC's attention changes with respect to a licensee or parent company.

NRC Information Notice 2000-01: Operational Issues Identified in Boiling Water Reactor Trip and Transient dated February 11, 2000

The U.S. Nuclear Regulatory Commission issued this information notice to alert addressees to equipment and procedural issues experienced in a recent transient at the Hatch nuclear power plant.

NRC Regulatory Issue Summary 2000-02: Closure of Generic Safety Issue 23, Reactor Coolant Pump Seal Failure Dated February 15, 2000

The U.S. Nuclear Regulatory Commission issued this regulatory issue summary (RIS) to notify nuclear power reactor licensees about the staff's closure of Generic Safety Issue 23 (GSI-23), "Reactor Coolant Pump Seal Failure."

Reactor Oversight Process Improvements

The last roundtable public meeting for pilot plants was held in the vicinity of the Salem and Hope Creek power plants on February 2, 2000. At this meeting, the NRC staff discussed the new risk informed oversight process with members of the local public and state and local officials and obtained their feedback on the process and the recently concluded pilot program. The meeting was well attended and focused on the public's perception of the revised reactor oversight process.

On February 7- 11, 2000, the Technical Training Center (TTC) staff conducted Revised Reactor Oversight Process Training at Chattanooga, TN, for NRC inspectors. The TTC is conducting training in Region II during the week of February 14, 2000. The training will be completed for all regions in April 2000.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending February 18, 2000

Observation of the Department of Energy Audit of the Waste Form Process Model Report

On January 31-February 4, 2000, staff from the Division of Waste Management observed the Department of Energy's (DOE's ), Office of Quality Assurance audit of the Waste Form Process Model Report (PMR). The audit was conducted at the Yucca Mountain project office in Las Vegas, Nevada. Four analysis model reports (AMRs) supporting the Waste Form PMR were selected for review during the audit. The scope of the AMRs included an assessment of the technical adequacy of the initial cladding condition and colloid source term abstraction, and colloid stability and attachment properties. No deficiencies were identified during the audit. The audit resulted in several recommendations on improving the AMR process.

No data qualification activities were reviewed during the audit. DOE provided information on the progress in reaching its goal of having 50 percent of the data supporting the Site Recommendation Considerations Report qualified by May 2000. On January 31, 2000, DOE had fully qualified 231 data sets or data tracking numbers (DTNs) out of a projected 1600 DTNs.

Observation of the Department of Energy Audit of the Engineered Barrier System Process Model Report

On February 7-11, 2000, staff from the Division of Waste Management observed the Department of Energy's (DOE's), Office of Quality Assurance audit of the Engineered Barrier System (EBS) Process Model Report (PMR). The audit was conducted at the Yucca Mountain project office in Las Vegas, Nevada. Four analysis model reports (AMRs) supporting the EBS PMR were selected for review during the audit. The scope of the AMRs included conceptual models of in-drift corrosion products and ventilation, model documentation for the in-drift thermal-hydrological-mechanical model, and drift degradation analysis.

The overall implementation of the applicable quality assurance program was determined to be effective, however six deficiencies regarding the processes associated with AMR development and review were generated. Additionally, several recommendations were provided to enhance the technical composition of the AMRs.

The data qualification activities observed during this and the previous five PMR audits has been minimal. The Nuclear Regulatory Commission staff will need to perform additional observations and assessments to evaluate the data qualification process.

Meeting on Jefferson Proving Grounds Decommissioning Status

On February 10, 2000, staff from the Division of Waste Management (DWM) participated in a meeting with the U.S. Army, Development Test Command (DTC) in Aberdeen, Maryland, to discuss the status of decommissioning the Jefferson Proving Ground (JPG) Site Decommissioning Management Plan site. DTC had submitted a decommissioning plan (DP) under the restricted release provisions of the License Termination Rule. DWM staff had recently completed it's initial review of the DP and forwarded comments to DTC. The meeting included presentations by the Army on site history, site conditions, the DP, and future activities. DWM staff informed DTC staff that the Nuclear Regulatory Commission (NRC) plans to assess the environmental impact of JPG's decommissioning and restricted release proposal in an Environmental Impact Statement (EIS). NRC and DTC agreed to hold a meeting to discuss NRC's questions on the DP so that both parties have an understanding of what the responses should encompass. The responses are needed to begin the analysis in the EIS. DWM staff plans to visit the JPG site within the next few months, and has agreed to be on the agenda for the next JPG Restoration Advisory Board meeting in May 2000 near the JPG site.

Meeting Regarding Naval Reactors Spent Fuel Storage Facility

On February 10, 2000, staff from the Spent Fuel Project Office met with the Department of Energy (DOE), Division of Naval Reactors, in Crystal City, Virginia, to discuss the DOE spent fuel storage facility which will be located on the Idaho Engineering and Environmental Laboratory site. The storage system is composed of welded stainless steel canisters that are placed within concrete and steel storage overpacks. These are stored on a covered concrete pad. DOE has submitted a safety analysis report for the facility to the Nuclear Regulatory Commission for review.

Meeting with Fansteel Inc.

On February 15, 2000, Division of Fuel Cycle Safety and Safeguards and Division of Waste Management staff met with representatives from Fansteel Inc. Representatives from the state of Oklahoma participated in the meeting via teleconference. The Fansteel facility, located in Muskogee, Oklahoma, recently submitted a decommissioning plan proposing on-site waste disposal. A request for hearing on the decommissioning plan was received from the state. The February meeting was held to discuss issues related to the content of an Environmental Report which Fansteel is required to submit. The staff also discussed technical issues raised during review of Fansteel's decommissioning plan, and institutional control issues which are likely to come up in the future.

ENCLOSURE C

Office of Nuclear Regulatory Research
Items of Interest
Week Ending February 18, 2000

Public Meeting on Technical Basis To Revise PTS Rule

On February 2-3, RES staff held a public meeting with stakeholders to discuss technical issues in regard to the re-evaluation of the technical basis for a risk-informed revision to the pressurized thermal shock (PTS) rule, 10 CFR 50.61. A number of participants attended this meeting, including NRR staff, PWR vendors, licensees, EPRI, and the public. The technical basis re-evaluation is expected to be completed by December 2001.

The NRC staff, NRC contractors, and industry representatives made presentations on various PTS issues and reviewed earlier work performed in support of the PTS rule and Regulatory Guide 1.154 on plant-specific PTS evaluation. Other presentations included ongoing work in state-of-the-art analysis methodologies involving materials engineering, probabilistic fracture mechanics, and thermal-hydraulics and probabilistic risk assessment to analyze the structural integrity of irradiation embrittled reactor pressure vessels under potential PTS loading conditions. The staff discussed progress on new initiatives in generic flaw distributions, revised radiation embrittlement correlations, material fracture toughness, and chemical composition distributions for RPV materials to perform PFM analysis.

These methodologies will be applied to generic and plant-specific PTS analyses of power plants that represent the three U.S. PWR reactor systems vendors. The next major milestone in the project will be presentations to the ACRS in March, which will include discussion of the options for revising the bases for the PTS risk acceptance criteria.

Meeting with Okonite on Failure of Low-Voltage I & C Cables During LOCA Tests

On February 8, 2000, RES and NRR staff met with representatives of the Okonite Company, a manufacturer of cables used in operating nuclear power plants. Also in attendance were representatives from the Electric Power Research Institute (EPRI), NUS Corporation, and the Brookhaven National Laboratory (BNL). The purpose of this meeting was to discuss recent research results that involved failures of low-voltage I&C cables manufactured by the Okonite Company.

In support of the resolution of GSI-168, "Environmental Qualification (EQ) of Electric Equipment," RES is conducting a series of LOCA tests on low-voltage I&C cables at Wyle Laboratories. The tests involve samples of new, artificially aged, and naturally aged samples of cables. Artificially aged cables are aged to simulate 20, 40 and 60 years of service. Cable types selected are representative of approximately 70% of cables in service today. The cables are both single conductor and multi-conductor configurations and involve bonded and unbonded jacket construction. The tests were conducted under conditions consistent with the original qualification tests. The results for the fifth of the six planned LOCA tests showed unacceptable degradation of the jacket and insulation for bonded, single conductor Okonite cables that were aged to simulate 20 and 40 years of service. The failed cables were of Hypalon jacket construction bonded to Ethylene Propylene Rubber (EPR) insulation.

During the meeting, the representatives from Okonite argued that the preaging test conditions were overly conservative (even though the test parameters were based on an Okonite Test Report). Operating experience indicates that the cables in nuclear power plants may not see the postulated test parameters. Okonite stressed that the test parameters should be re-examined based on cumulative operating experience.

The staff has concluded that continued operation of nuclear power plants is warranted while the evaluation of the potential deficiency of these cables continues. This conclusion is based on the relatively limited application of single conductor EPR/Hypalon bonded cables inside containment in operating plants and on the low probability of challenging events. NRR and RES staff are continuing to work jointly on (1) understanding the technical details of the cable failures, (2) assessing the safety significance of these test results, and (3) identifying any appropriate near-term and long-term actions. An open public meeting is planned on February 16, 2000, to discuss the test results with the nuclear industry.

Air-Operated Valve (AOV) Study

RES has completed a study, "Evaluation of Air-Operated Valves at U.S. Light-Water Reactors." This study is being published as Volume 13 of NUREG-1275 simultaneously with supporting documentation in contractor report NUREG/CR-6654, "A Study of Air-Operated Valves in U.S. Nuclear Power Plants."

The study included a comprehensive review of operating experience, visits to seven stations, and review of licensee AOV programs (many of these programs were based on maintenance rule panel activities).

The primary concern with AOVs is the potential for simultaneous common-cause failure of redundant trains of safety systems. AOV common-cause failure concerns (similar to the concerns with motor-operated valves) include design, manufacturing, maintenance, and testing deficiencies; these factors may not properly account for conditions present during transients or accidents.

The licensees that were visited identified the AOVs they consider to have risk significance based on high risk achievement worth, Fussell Vesely and other risk methods.

The study report will be referenced in and complements a forthcoming Regulatory Information Summary being issued by NRR. Both documents encourage cooperation between the NRC and industry to develop and implement effective AOV programs to minimize the likelihood of common-cause failures of risk-important AOVs.

ENCLOSURE D

Incident Response Operations
Items of Interest
Week Ending February 18, 2000

Preliminary Notifications

1. PNO-II-00-007, Healthsouth Doctor's Hospital, Inc., MEDICAL MISADMINISTRATION
   
   
2. PNO-II-00-008, Duke Power Co. (Oconee 1), UNPLANNED SHUTDOWN
   
   
3. PNO-III-00-005, Oncology Institute of Greater Lafayette, BRACHYITHERAPY MISADMINISTRATION (Wrong Treatment Site)

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending February 18, 2000

Public Workshop on Performance-Based Regulatory Approaches (10 CFR Chapter I)

A document that announces a public workshop and provides a corrected version of an earlier document on the NRC's proposed high-level guidelines for developing performance-based activities was published in the Federal Register on February 17, 2000 (65 FR 8072). This document focuses on the NRC staff's efforts to develop high-level guidelines for performance-based initiatives applicable to all NRC licensees. The public meeting is scheduled for March 1, 2000.

Contract Award

On February 15, 2000, the Division of Contracts and Property Management awarded contract No. NRC-10-00-010 to C&G Moving and Storage, Inc., as a result of an 8(a) set aside noncompetitive negotiation process. The contractor will provide the Division of Administrative Services, Office of Administration with labor and equipment support services. The contract is a indefinite quantity/ firm fixed price type with an estimated value of $318,000. The contract period is for six months with 3 six-month option periods. The contract was awarded in 45 days utilizing the following streamlining initiatives: (1) simplified proposal content; (2) electronic receipt of the SOW; and (3) new SBA/NRC MOU eliminating need for tripartite award document and reducing the time to process SBA offering and acceptance letter to five working days.

ENCLOSURE G

Chief Information Officer
Items of Interest
Week Ending February 18, 2000

Freedom of Information and Privacy Act Requests received during the 5-Day Period of February 11, 2000 through February 18, 2000:

ENCLOSURE I

Office of Human Resources
Items of Interest
Week Ending February 18, 2000

* Effective week of 02/11/00

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending February 18, 2000

Media Interest

Joe Holonich, NMSS, and Bill Brach, SFPO, were interviewed by Utility Business, a trade publication catering to gas, water, and electric utility executives. The interview focused on high-level waste, spent fuel storage and transportation.

There was high press interest in Region I and HQ in the steam generator tube leak at Indian Point 2.

ENCLOSURE O

Office of the Secretary
Items of Interest
Week Ending February 18, 2000

Commission Correspondence

1. Letter to Congressman Markey dated February 11, 2000, concerns NRC's December 21, 1999 Year 2000 (Y2K) security advisory.
   
   
2. Letter to Joe F. Colvin, NEI, dated February 10, 2000, concerns NEI's comments on SECY-99-256, "Rulemaking Plan for Risk-Informing Special Treatment Regulations."

Federal Register Notices Issued

1. Advisory Committee on Reactor Safeguards; Meeting Notice.
   
   
2. Application for a License to Export Radioactive Waste (Bayou Steel Corp.).

ENCLOSURE P

Region I
Items of Interest
Week Ending February 18, 2000

Indian Point 2- Steam Generator Tube Leak

At 7:29 p.m. on February 15, 2000, the Indian Point 2 plant in Buchanan, NY declared an "Alert" following indications of a steam generator tube leak. Indian Point 2 is operated by Consolidated Edison Company of New York (ConEd). Plant operators manually tripped the plant, successfully isolated the affected steam generator, and took actions to place the plant in a cold shutdown condition, which was achieved at 4:57 p.m. on February 16. Safety systems performed as expected. The Alert was terminated at 6:50 p.m. on February 16. The adjacent Indian Point 3 plant, which is operated by the New York Power Authority, was not affected by the event.

The licensee dispatched survey teams to monitor radiation around the plant during the event, but no unusual radiation levels were detected. Evaluation of the extent of any releases of radioactivity that may have occurred during the event continues, but assessments thus far indicate that radiological exposures, if they occurred, were far below safety limits.

In response to the event, the Region I Incident Response Center was staffed, and Resident Inspectors monitored the licensee's actions in the plant control room and in emergency response facilities. State of New York and local authorities responded to the licensee's emergency response facilities.

There was extensive media coverage of the event. Both the NRC and the licensee issued press releases.

An Augmented Inspection Team (AIT) has been established to review the facts surrounding the occurrence of the tube leak and the licensee's response to it. AIT on-site activities commenced on Friday, February 18, 2000.

Indian Point 3 and FitzPatrick

On Tuesday, February 14, 2000, the New York Power Authority (NYPA) reached an agreement in principle for the sale of the Indian Point 3 and FitzPatrick plants to Entergy Corporation. NYPA's Board of Trustees, Entergy's Board of Directors, the NRC, and other regulatory agencies must yet approve the sale. The licensee anticipates that the transaction could be closed by the fourth quarter of 2000. Entergy bought the Pilgrim plant from Boston Edison last July and is managing decommissioning activities at Maine Yankee and Millstone Unit 1.

Jersey City Medical Center, Jersey City, New Jersey

On February 15, 2000, a predecisional enforcement conference was held at the Region I Office in King of Prussia, PA with representatives of the Jersey City Medical Center. The conference was held to discuss the concerns that were identified during a routine inspection on January 5, 2000, related to the security of radioactive material in the licensee's Nuclear Medicine Department hot lab. The licensee presented its corrective and preventive actions for consideration by the Commission.

Management Meeting with Geotech

A management meeting was held in Region I on February 17, 2000 with Geotech, a portable gauge licensee in Maple Shade, NJ, to discuss the licensee's corrective actions for violations identified during an NRC inspection on December 30, 1999. The licensee described the increased management attention that was being provided to the licensed program and provided assurances that the identified violations had been corrected and would not recur.

ENCLOSURE P

Region II
Items of Interest
Week Ending February 18, 2000

Regional Assistance Committee Meeting

On February 15-18, 2000, the State Liaison Officer participated as a member of the Regional Assistance Committee in the St. Lucie full scale nuclear exercise, involving officials of the State of Florida and applicable local governments in Jensen Beach, Florida. The exercise was successful with no deficiencies identified.

Duke Energy Corporation - Catawba Engineering Initiatives

On February 16, 2000, representatives from Duke Energy Corporation were in the Regional Office to attend a management meeting. The purpose of the meeting was to discuss Catawba Engineering Initiatives.

National Operator Licensing Workshop in Orlando, Florida

On February 17-18, 2000, the Deputy Regional Administrator and the Director of the Division of Reactor Safety attended the National Operator Licensing Workshop in Orlando, Florida. This workshop was sponsored by the Nuclear Energy Institute.

ENCLOSURE P

Region III
Items of Interest
Week Ending February 18, 2000

D.C. Cook Meetings

On February 15, 2000, the regional and headquarters staffs conducted two meetings in NRC Headquarters with representatives of American Electric Power Co. The first meeting covered the restart schedule and the status of corrective actions underway at the D.C. Cook Nuclear Power Station. The second meeting discussed the NRC's plans for the transition to the new inspection and assessment process at the D. C. Cook facility.

Regional Administrator Visits to Wisconsin plants

The Regional Administrator visited the Kewaunee Nuclear Power Plant on February 17, 2000, and the Point Beach Nuclear Power Station on February 18, 2000, to meet with the resident inspectors and review the status of plant activities.

ENCLOSURE P

Region IV
Items of Interest
Week Ending February 18, 2000

Commissioner Merrifield Visit To General Atomics and San Onofre Nuclear Generating Station

Commissioner Merrifield, accompanied by the Deputy Regional Administrator and other members of the NRC staff, visited General Atomics (GA) on February 15, 2000. The highlights of the visit included a briefing by GA Vice-Chairman Neil Blue on the planned use of the Modular High Temperature Gas Reactor (MHTGR), significant decommissioning activities being overseen by both NRC Region IV and the State of California, and the operational DIII-D National Fusion Facility. The following day, the Commissioner visited the San Onofre Nuclear Generating Station (SONGS). The highlights of the SONGS visit included a briefing by the resident inspector staff, a tour of all 3 units and discussion of the plans for the licensing of an Independent Spent Fuel Storage Installation for Unit 1 and the subsequent decommissioning of that facility.

Professional Reactor Operator Society

On February 15, 2000, a management meeting with various members of the Professional Reactor Operator Society was held at the NRC Region IV office in Arlington, Texas. The purpose of the meeting was to discuss various topics of interest such as operator overtime and stress, the revised reactor oversight and baseline inspection program, the expected changes to 50.59 and permanent spent fuel storage facilities.

Predecisional Enforcement Conference

The Director, Division of Nuclear Materials Safety, and other members of the Region IV staff conducted a closed predecisional enforcement conference on February 16, 2000, with Pocatello Regional Medical Center. The purpose of the conference was to discuss apparent violations identified during an inspection completed on January 6, 2000.

Chairman Meserve Visit To Comanche Peak and Region IV

Chairman Meserve, accompanied by the Regional Administrator and other members of the NRC staff, visited the Comanche Peak Steam Electric Station on February 16, 2000. The highlights of the visit included a briefing by the resident inspector staff, a tour of the facility, and a press availability at the conclusion of the visit which included one TV camera crew from Dallas. The following day, Chairman Meserve was briefed by the Region IV management team concerning regional operations and the unique characteristics of Region IV. He toured the Region IV offices and spoke with the staff. Overall, the Chairman's visit to Region IV was well received by the staff.

ENCLOSURE R

Office of Congressional Affairs
Items of Interest
Week Ending February 18, 2000